In order to prevent the state pension age from rising, a former pensions tsar has suggested eliminating the triple lock. The triple lock, which was implemented in 2010, guarantees an annual increase in the state pension based on wage growth, inflation, or 2.5 percent, whichever is highest.
John Cridland, who conducted an independent review of the state pension age in 2017, urged MPs to abandon this costly commitment, which has been partially financed by raising the pension payout age. Speaking at the Work and Pensions committee in the House of Commons, Cridland stated that if the government believed an earlier or larger increase in the pension age was necessary, the triple lock could not be considered untouchable.
The state pension age is set to rise from 66 to 67 by 2028. A government review is currently examining the possibility of increasing the age to 68 by 2035, rather than the previously scheduled 2044-46 timeframe. This proposal has raised concerns among pension industry experts and those nearing retirement.
Cridland, a former director general of the Confederation of British Industry, emphasized that while individuals desire a valuable pension, they also want to live long enough to receive it. He suggested that having an inflexible triple lock, combined with continually pushing up the pension age, does not benefit all pensioners.
Prime Minister Rishi Sunak’s decision to uphold the triple lock has sparked discussions about its long-term affordability. In April, the state pension will experience its largest ever increase of 10.1 percent due to the triple lock. According to analysis by the TaxPayers’ Alliance, this will cost taxpayers over £1,000 each over the next four years.
A spokesperson for the Prime Minister confirmed that there are no plans to modify the triple lock.
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